(Omaha, Nebraska) Farm income slips again in the latest Rural Mainstreet Index, which focuses on a ten states in the nation's midsection, including Iowa.
Creighton University Economics Professor Ernie Goss says farm income continues to struggling, because of low commodity prices from livestock to grain.
He says farm land values have slipped again and more than half the bankers in his latest survey say they are re-structuring farm loans. Goss says he expected an increase in defaults, but that has not materialized, but it could if the trends continue. He notes rising in interest won't help matters.
He says an increase in agricultural sales overseas is what's needed to boost the ag economy. He says there's especially room for improvement for beef sales to China.
Goss says production is good globally, and the US Department of Agriculture is predicting strong domestic yields. He says, however, bankers are less optimistic about the strong yields, because of this year's drought.
The September Rural Mainstreet Index for Iowa sank to 39.9 from 42.3 in August. Iowa’s farmland-price index for September fell to 36.2 from August’s 43.1. Iowa’s new-hiring index for September climbed to 57.5 from August’s 52.5.
WHO Radio News also asked Goss about the impact of Hurricanes Harvey and Irma. He says the disasters will have fairly significant negative impacts for the current economic quarter, but when the rebuilding begins in Houston and in Florida, there will be many positive impacts.
He says the Houston port is a key port for agriculture exports, so there was a blip in the month of September.